As you know, our government has been hard at work these past few years trying to extract additional tax revenue from our small Canadian businesses. These changes will have a profound impact on how you do your tax planning moving forward. So, what strategies are the savvy and sophisticated business owners now using to shelter themselves from corporate taxes? Individual Pension Plans (IPPs).
The IPP in a nutshell:
- Strategy for business owners who are 40+ and are receiving $100,000+ in T4 income
- Allows business owners to move money out of their corporation into a tax-sheltered savings vehicle
- A great way to transfer wealth before a sale or wind down
- Helps purify your corporation to ensure you qualify for the capital gains exemption
- Contributions to your IPP are tax-deductible resulting in decreased corporate taxes
If you’d like additional information on Individual Pension Plans let us know and we’ll send you our one-page report to review.
